-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HnZisCVicrEbz2Z9tX1ZjqJr8UMyzid8LH5bmmsDrQqLUfR1DbeEsfTSrfdSP9I0 sjr4cAIzVP70Xe3F4W3NSw== 0000950134-03-010530.txt : 20030725 0000950134-03-010530.hdr.sgml : 20030725 20030725144013 ACCESSION NUMBER: 0000950134-03-010530 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030724 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASH AMERICA INTERNATIONAL INC CENTRAL INDEX KEY: 0000807884 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS RETAIL [5900] IRS NUMBER: 752018239 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09733 FILM NUMBER: 03803204 BUSINESS ADDRESS: STREET 1: 1600 W 7TH ST CITY: FT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8173351100 MAIL ADDRESS: STREET 1: 1600 WEST 7TH STREET CITY: FORT WORTH STATE: TX ZIP: 76102 FORMER COMPANY: FORMER CONFORMED NAME: CASH AMERICA INVESTMENTS INC /TX/ DATE OF NAME CHANGE: 19920520 8-K 1 d07726e8vk.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 24, 2003 CASH AMERICA INTERNATIONAL, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) TEXAS 1-9733 75-2018239 (STATE OF INCORPORATION) (COMMISSION FILE NO.) (IRS EMPLOYER IDENTIFICATION NO.) 1600 WEST 7TH STREET FORT WORTH, TEXAS 76102 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (817) 335-1100 ================================================================================ ITEM 9. REGULATION FD DISCLOSURE The following information is furnished pursuant to Item 12, "Disclosure of Results of Operations and Financial Condition." On July 24, 2003, Cash America International, Inc. (the "Company") issued a press release announcing its earnings for the second quarter of 2003. A copy of the press release is attached hereto as Exhibit 99.1. EXHIBITS 99.1 Press release dated July 24, 2003, issued by Cash America International, Inc. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CASH AMERICA INTERNATIONAL, INC. Date: July 25, 2003 By: /s/ Hugh A. Simpson ---------------------------------- Hugh A. Simpson Executive Vice President, General Counsel and Secretary 3 EXHIBIT INDEX
Exhibit No. Description - ----------- ----------- 99.1 Press release dated July 24, 2003, issued by Cash America International, Inc.
EX-99.1 3 d07726exv99w1.txt PRESS RELEASE EXHIBIT 99.1 ADDITIONAL INFORMATION: FOR IMMEDIATE RELEASE Thomas A. Bessant, Jr. (817) 335-1100 ******************************************************************************** CASH AMERICA ANNOUNCES SECOND QUARTER RESULTS AND RAISES FULL YEAR 2003 EARNINGS GUIDANCE ******************************************************************************** Fort Worth, Texas (July 24, 2003) -- Cash America International, Inc. (NYSE: PWN) reported today that net income for the second quarter ended June 30, 2003 was $5,651,000 (23 cents per share) which includes an after tax gain on the sale of a non-operating asset of $1.1 million (5 cents per share). Excluding the gain, net income in the second quarter of 2003 would have been $4,507,000 (18 cents per share) compared to income from continuing operations of $2,682,000 (11 cents per share) in the second quarter of 2002, representing an increase of 68% year over year. Net income in the second quarter of 2002 was $3,482,000 (14 cents per share) due to an $800,000 gain from discontinued operations recognized in the 2002 quarter. The net income for the second quarter of 2003 is at the top end of the Company's upward revision of estimated earnings per share announced on July 1, 2003 of between 17 and 18 cents per share excluding the gain on sale of asset. The 68% increase in comparable earnings in the second quarter was due to a 4% increase in total revenue to $94,417,000 in the 2003 period from $90,987,000 in 2002 on the strength of a 17% increase in combined service charges and fees on higher average balances of pawn loans and cash advances. The Company's consolidated pawn loan balance finished the quarter 14% above the same date last year. In addition, the Company's profit on the disposition of merchandise in the quarter increased 9% from the prior year as a result of higher gross margins on goods sold. The aggregate effect of the increase in service charges and fees combined with the higher profit on the disposition of merchandise to produce a $7.2 million, 14% increase, in net revenue for the three month period. Commenting on the results for the second quarter, Daniel R. Feehan, President and Chief Executive Officer said, "Our earnings in the second quarter reflect the positive effects of higher levels of earning assets of both pawn loans and cash advances due to increases in customer demand. Also benefiting the quarter was the consistent execution of our operating strategy of expanding profit margin on the sale of merchandise." For the six month period ending June 30, 2003, Cash America reported that net income, excluding the gain on sale of assets, increased 43% to $11,276,000 (45 cents per share) from the 2002 income from continuing operations of $7,885,000 (32 cents per share) for the same period. Total revenue for the first six months of 2003 was $200 million compared to $192 million in the prior year. Cash America will conduct a conference call to discuss its second quarter earnings on Thursday, July 24, 2003, at 3:45 PM CST. A live web cast of the call will be available on the home page of the Company's corporate web site (www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. Forward-Looking Information As the Company enters the third quarter of fiscal 2003 it has higher levels of both pawn loans and short term cash advances than at the end of the same period of 2002. These higher asset levels provide earnings momentum that should continue as long as this trend is sustained. At this time management believes that the current economic environment and the higher prevailing market value of gold will allow for the growth in pawn loan balances to satisfy higher customer demand for pawn loans. Management believes these trends and increases in the short term cash advance balances in response to consumer demand for this alternative product will result in sustained earnings growth for the Company in fiscal 2003. Based on these assumptions, management has revised and increased its forecasted earnings per share for fiscal 2003 from 89 to 94 cents per share to be between 98 cents and $1.01 per share. This compares to 75 cents per share for fiscal 2002. The expected earnings for 2003 do not include the potential effect of the Company's previously announced proposed acquisition of Cashland, Inc. which it expects to complete during the third quarter of 2003. In the near term, management expects that earnings per share for the third quarter of fiscal 2003 to be between 18 and 19 cents per share compared to 13 cents per share in the third quarter of 2002. Cash America International, Inc. is a provider of specialty financial services to individuals in the United States, United Kingdom and Sweden. Cash America is the largest provider of secured non-recourse loans, commonly referred to as pawn loans through 462 locations in 17 states and two foreign countries. As an alternative to a pawn loan, the Company also offers unsecured short term cash advances in many of its U.S. and U.K. locations. In addition, the Company provides check cashing services through its 139 franchised and Company-owned "Mr. Payroll" check cashing centers. This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries ("the Company"). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in demand for the Company's services, the actions of third parties who offer products and services at the Company's locations, changes in competition, the ability of the Company to open new operating units in accordance with its plans, economic conditions, real estate market fluctuations, interest rate fluctuations, changes in the capital markets, changes in tax and other laws and governmental rules and regulations applicable to the Company's business, and other risks indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control, and, in many cases, the Company cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, terms such as "believes", "estimates", "plans", "expects", "anticipates" and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release. * * * CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS (in thousands, except per share data) (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2003 2002 2003 2002 -------- -------- -------- -------- CONSOLIDATED OPERATIONS: Total revenue ............................. $ 94,417 $ 90,987 $199,922 $191,707 Net revenue ............................... 59,030 51,802 122,981 108,641 Total operating expenses .................. 49,953 45,526 100,939 91,955 - ---------------------------------------------------------------------------------------------- INCOME FROM OPERATIONS .................... 9,077 6,276 22,042 16,686 - ---------------------------------------------------------------------------------------------- Income before income taxes ................ 7,964 4,170 18,753 12,301 - ---------------------------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS ......... 5,651 2,682 12,420 7,885 - ---------------------------------------------------------------------------------------------- NET INCOME ................................ $ 5,651 $ 3,482 $ 12,420 $ 8,685 ============================================================================================== Net income per share: Basic - Income from continuing operations ...... $ 0.23 $ 0.11 $ 0.51 $ 0.32 Net income ............................. $ 0.23 $ 0.14 $ 0.51 $ 0.35 Diluted - Income from continuing operations ...... $ 0.22 $ 0.11 $ 0.50 $ 0.32 Net income ............................. $ 0.22 $ 0.14 $ 0.50 $ 0.35 Weighted average shares - Basic .............. 24,189 24,447 24,215 24,483 Weighted average shares - Diluted ............ 25,128 24,916 24,940 24,888 ==============================================================================================
LENDING OPERATIONS FINANCIAL AND OPERATIONAL DATA:
As of June 30, -------------------- 2003 2002 -------- -------- PAWN OPERATIONS - Domestic pawn loans outstanding ......................... $ 81,388 $ 75,664 Foreign pawn loans outstanding .......................... 55,509 44,911 -------- -------- Total loans outstanding ................................. $136,897 $120,575 Total merchandise held for disposition, net ............. $ 50,947 $ 49,958 Amounts per owned lending location - Domestic only: Loans outstanding ............................... $ 209 $ 190 Merchandise held for disposition ................ $ 116 117 Consolidated: Loans outstanding ............................... $ 302 $ 266 Merchandise held for disposition ................ $ 112 $ 110 Number of pawnshop locations (not in thousands) - Company owned ........................................ 453 454 Franchised ........................................... 9 13 -------- -------- 462 467 -------- --------
Three Months Ended Six Months Ended June 30, June 30, ----------------------- ---------------------- 2003 2002 2003 2002 --------- --------- --------- --------- SMALL CONSUMER CASH ADVANCES ("CASH ADVANCES") - Total amount of cash advances written .............. $ 43,552 $26,347 $ 81,762 $ 48,035 Number of cash advances written (not in thousands) .............................. 148,507 94,037 278,244 170,509 Average cash advance amount written (not in thousands) .............................. $ 293 $ 280 $ 294 $ 282 Average number of locations offering cash advances (not in thousands) ..................... 391 391 391 391
As of June 30, ---------------------- 2003 2002 --------- --------- Combined cash advances outstanding (A) ....................................... $ 11,704 $ 7,489 Company-owned cash advances (B): Cash advances and fees outstanding ........................................... $ 10,400 $ 2,754 Less: Allowance for losses .................................................. (1,937) (1,324) --------- --------- Net cash advances and fees outstanding .................................... $ 8,463 $ 1,430 ========= =========
(A) Includes cash advances made by the Company and cash advances made by third-party financial institutions. (B) Amounts recorded in the Company's consolidated financial statements. CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
June 30, ----------------------- December 31, 2003 2002 2002 --------- --------- ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents ............................................... $ 7,697 $ 6,691 $ 3,951 Pawn loans .............................................................. 136,897 120,575 127,388 Cash advances, net ...................................................... 8,463 1,430 2,210 Merchandise held for disposition, net ................................... 50,947 49,958 54,444 Finance and service charges receivable .................................. 21,316 18,864 21,096 Other receivables and prepaid expenses .................................. 9,030 6,479 8,671 Income taxes recoverable ................................................ -- 2,270 -- Deferred tax assets ..................................................... 6,169 5,031 5,392 --------- --------- --------- Total current assets ................................................. 240,519 211,298 223,152 Property and equipment, net ................................................ 67,896 67,816 67,254 Goodwill ................................................................... 81,432 78,127 79,833 Other assets ............................................................... 2,814 5,079 6,239 --------- --------- --------- Total assets ......................................................... $ 392,661 $ 362,320 $ 376,478 ========= ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses ................................... $ 25,401 $ 19,663 $ 24,920 Customer deposits ....................................................... 4,381 4,336 4,050 Income taxes currently payable .......................................... 1,683 943 2,086 Current portion of long-term debt ....................................... 8,286 8,671 12,571 --------- --------- --------- Total current liabilities ............................................ 39,751 33,613 43,627 Deferred tax liabilities ................................................... 5,390 2,337 4,385 Long-term debt ............................................................. 140,591 146,683 136,131 Stockholders' equity: Common stock, $.10 par value per share, 80,000,000 shares authorized .... 3,024 3,024 3,024 Additional paid-in capital .............................................. 127,977 127,820 127,819 Retained earnings ....................................................... 124,971 103,263 113,278 Accumulated other comprehensive loss .................................... 660 (6,288) (2,718) Notes receivable secured by common stock ................................ (5,774) (6,047) (5,864) Treasury shares at cost ................................................. (43,929) (42,085) (43,204) --------- --------- --------- Total stockholders' equity ........................................... 206,929 179,687 192,335 --------- --------- --------- Total liabilities and stockholders' equity ........................... $ 392,661 $ 362,320 $ 376,478 ========= ========= =========
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)
Three Months Ended Six Months Ended June 30, June 30, ----------------------- ----------------------- 2003 2002 2003 2002 --------- --------- --------- --------- (Unaudited) REVENUE Finance and service charges ............................. $ 30,601 $ 27,456 $ 62,056 $ 56,276 Proceeds from disposition of merchandise ................ 56,176 58,279 122,295 125,313 Cash advance fees ....................................... 6,394 4,184 12,860 7,746 Check cashing royalties and fees ........................ 1,246 1,068 2,711 2,372 --------- --------- --------- --------- TOTAL REVENUE .............................................. 94,417 90,987 199,922 191,707 COST OF REVENUE Disposed merchandise .................................... 35,387 39,185 76,941 83,066 --------- --------- --------- --------- NET REVENUE ................................................ 59,030 51,802 122,981 108,641 --------- --------- --------- --------- EXPENSES Operations .............................................. 36,241 33,312 73,211 67,757 Cash advance loss provision ............................. 1,692 1,568 3,024 2,469 Administration .......................................... 8,413 6,962 17,408 14,459 Depreciation and amortization ........................... 3,607 3,684 7,296 7,270 --------- --------- --------- --------- TOTAL EXPENSES ............................................. 49,953 45,526 100,939 91,955 --------- --------- --------- --------- INCOME FROM OPERATIONS ..................................... 9,077 6,276 22,042 16,686 Interest expense, net ................................... 2,126 2,070 4,302 4,313 Loss from derivative valuation fluctuations ............. -- 36 -- 72 Gain from disposal of asset ............................. (1,013) -- (1,013) -- --------- --------- --------- --------- Income from continuing operations before income taxes ...... 7,964 4,170 18,753 12,301 Provision for income taxes .............................. 2,313 1,488 6,333 4,416 --------- --------- --------- --------- INCOME FROM CONTINUING OPERATIONS .......................... 5,651 2,682 12,420 7,885 Gain from discontinued operations ....................... -- 800 -- 800 --------- --------- --------- --------- NET INCOME ................................................. $ 5,651 $ 3,482 $ 12,420 $ 8,685 ========= ========= ========= ========= Net income per share: Basic - Income from continuing operations .................... $ 0.23 $ 0.11 $ 0.51 $ 0.32 Gain from discontinued operations .................... $ -- $ 0.03 $ -- $ 0.03 Net income ........................................... $ 0.23 $ 0.14 $ 0.51 $ 0.35 Diluted - Income from continuing operations .................... $ 0.22 $ 0.11 $ 0.50 $ 0.32 Gain from discontinued operations .................... $ -- $ 0.03 $ -- $ 0.03 Net income ........................................... $ 0.22 $ 0.14 $ 0.50 $ 0.35 Weighted average common shares outstanding: Basic ................................................... 24,189 24,447 24,215 24,483 Diluted ................................................. 25,128 24,916 24,940 24,888
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED JUNE 30, 2003 AND 2002 (in thousands)
Lending --------------------------------- United Check States Foreign Total Cashing Consolidated ------- ------- ------- ------- ------------ (Unaudited) THREE MONTHS ENDED JUNE 30, 2003: REVENUE Finance and service charges ................... $23,439 $ 7,162 $30,601 $ -- $30,601 Proceeds from disposition of merchandise ...... 51,644 4,532 56,176 -- 56,176 Cash advance fees ............................. 6,394 -- 6,394 -- 6,394 Check cashing royalties and fees .............. -- 418 418 828 1,246 ------- ------- ------- ------- ------- TOTAL REVENUE .................................... 81,477 12,112 93,589 828 94,417 Cost of revenue - disposed merchandise ........... 31,984 3,403 35,387 -- 35,387 ------- ------- ------- ------- ------- NET REVENUE ...................................... 49,493 8,709 58,202 828 59,030 ------- ------- ------- ------- ------- EXPENSES Operations .................................... 31,916 3,948 35,864 377 36,241 Cash advance loss provision ................... 1,692 -- 1,692 -- 1,692 Administration ................................ 7,082 1,148 8,230 183 8,413 Depreciation and amortization ................. 2,837 648 3,485 122 3,607 ------- ------- ------- ------- ------- TOTAL EXPENSES ................................... 43,527 5,744 49,271 682 49,953 ------- ------- ------- ------- ------- INCOME FROM OPERATIONS ........................... $ 5,966 $ 2,965 $ 8,931 $ 146 $ 9,077 ======= ======= ======= ======= ======= THREE MONTHS ENDED JUNE 30, 2002: REVENUE Finance and service charges ................... $21,688 $ 5,768 $27,456 $ -- $27,456 Proceeds from disposition of merchandise ...... 55,093 3,186 58,279 -- 58,279 Cash advance fees ............................. 4,184 -- 4,184 -- 4,184 Check cashing royalties and fees .............. -- 242 242 826 1,068 ------- ------- ------- ------- ------- TOTAL REVENUE .................................... 80,965 9,196 90,161 826 90,987 Cost of revenue - disposed merchandise ........... 36,728 2,457 39,185 -- 39,185 ------- ------- ------- ------- ------- NET REVENUE ...................................... 44,237 6,739 50,976 826 51,802 ------- ------- ------- ------- ------- EXPENSES Operations .................................... 30,154 2,830 32,984 328 33,312 Cash advance loss provision ................... 1,568 -- 1,568 -- 1,568 Administration ................................ 5,810 1,008 6,818 144 6,962 Depreciation and amortization ................. 2,923 605 3,528 156 3,684 ------- ------- ------- ------- ------- TOTAL EXPENSES ................................... 40,455 4,443 44,898 628 45,526 ------- ------- ------- ------- ------- INCOME FROM OPERATIONS ........................... $ 3,782 $ 2,296 $ 6,078 $ 198 $ 6,276 ======= ======= ======= ======= =======
CASH AMERICA INTERNATIONAL, INC AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT SIX MONTHS ENDED JUNE 30, 2003 AND 2002 (in thousands)
Lending ----------------------------------- United Check States Foreign Total Cashing Consolidated -------- ------- -------- ------- ------------ (Unaudited) SIX MONTHS ENDED JUNE 30, 2003: REVENUE Finance and service charges ................... $ 48,148 $13,908 $ 62,056 $ -- $ 62,056 Proceeds from disposition of merchandise ...... 114,706 7,589 122,295 -- 122,295 Cash advance fees ............................. 12,860 -- 12,860 -- 12,860 Check cashing royalties and fees .............. -- 800 800 1,911 2,711 -------- ------- -------- ------ -------- TOTAL REVENUE .................................... 175,714 22,297 198,011 1,911 199,922 Cost of revenue - disposed merchandise ........... 71,487 5,454 76,941 -- 76,941 -------- ------- -------- ------ -------- NET REVENUE ...................................... 104,227 16,843 121,070 1,911 122,981 -------- ------- -------- ------ -------- EXPENSES Operations .................................... 64,821 7,583 72,404 807 73,211 Cash advance loss provision ................... 3,024 -- 3,024 -- 3,024 Administration ................................ 14,818 2,232 17,050 358 17,408 Depreciation and amortization ................. 5,719 1,333 7,052 244 7,296 -------- ------- -------- ------ -------- TOTAL EXPENSES ................................... 88,382 11,148 99,530 1,409 100,939 -------- ------- -------- ------ -------- INCOME FROM OPERATIONS ........................... $ 15,845 $ 5,695 $ 21,540 $ 502 $ 22,042 ======== ======= ======== ====== ======== SIX MONTHS ENDED JUNE 30, 2002: REVENUE Finance and service charges ................... $ 45,003 $11,273 $ 56,276 $ -- $ 56,276 Proceeds from disposition of merchandise ...... 119,650 5,663 125,313 -- 125,313 Cash advance fees ............................. 7,746 -- 7,746 -- 7,746 Check cashing royalties and fees .............. -- 426 426 1,946 2,372 -------- ------- -------- ------ -------- TOTAL REVENUE .................................... 172,399 17,362 189,761 1,946 191,707 Cost of revenue - disposed merchandise ........... 78,804 4,262 83,066 -- 83,066 -------- ------- -------- ------ -------- NET REVENUE ...................................... 93,595 13,100 106,695 1,946 108,641 -------- ------- -------- ------ -------- EXPENSES Operations .................................... 61,424 5,566 66,990 767 67,757 Cash advance loss provision ................... 2,469 -- 2,469 -- 2,469 Administration ................................ 12,158 1,970 14,128 331 14,459 Depreciation and amortization ................. 5,793 1,169 6,962 308 7,270 -------- ------- -------- ------ -------- TOTAL EXPENSES ................................... 81,844 8,705 90,549 1,406 91,955 -------- ------- -------- ------ -------- INCOME FROM OPERATIONS ........................... $ 11,751 $ 4,395 $ 16,146 $ 540 $ 16,686 ======== ======= ======== ====== ========
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